Grafana Labs once again recognized in the Gartner Magic Quadrant for Observability Platforms, confirming its place in the observability market. Grafana Labs has been named a Leader in the Gartner Magic Quadrant for Observability Platforms for the third year in a row. The company was also named a Leader in the Gartner Magic Quadrant for Observability Platforms, placing furthest to the right on the Completeness of Vision axis for the second consecutive year.
Grafana Labs said the recognition highlights the industry’s shift towards open and composable observability. Also, more and more organizations require platforms that can support AI-driven environments, distributed systems and rapidly scaling engineering workloads.
Grafana Cloud: AI-powered observability, doubled down
Operational complexity is the biggest challenge facing modern IT teams in the Grafana Labs 2026 Observability Survey. Managed observability adoption continues to grow. Nearly half of organizations now use managed observability solutions (up from 43 percent in 2025).
As enterprises deploy larger distributed environments, telemetry volumes continue to grow. In turn, engineering teams need more visibility in managing the escalating cost of infrastructure. AI workloads bring new operational challenges, such as monitoring models, maintaining infrastructure reliability, and optimizing resources.
Grafana Labs says observability needs to evolve with the adoption of AI. Organizations need tools to monitor systems that use AI, while using artificial intelligence responsibly to speed up investigations without replacing human expertise. During the past year, Grafana Labs introduced a handful of AI-centric features to Grafana Cloud.
Then, there’s conversational AI for Grafana Assistant that can respond to questions based on current telemetry data. It also has a Knowledge Graph that links services, dependencies and operational changes for better troubleshooting. Assistant Investigations automatically correlates alerts and finds potential root causes before engineers manually analyze. The company also announced Grafana Cloud CLI (gcx) and a remote MCP server. That gives AI agents secure access to the power of Grafana Cloud, while engineers retain the same operational context.
Grafana Cloud AI Observability expands monitoring across large language models, AI agents, inference pipelines and production AI applications. In addition to traditional infrastructure metrics, the platform also tracks latency, token usage, performance, model drift, and agent decision traces.
Grafana Labs also announced o11y-bench, an open-source benchmark for evaluating AI agents on real-world observability and site reliability engineering tasks. The company also received a 4.4 out of 5 rating for AI/LLM Observability in the 2026 Gartner Critical Capabilities for Observability Platforms report.
Adaptive Telemetry allows organizations to reduce unnecessary data while retaining valuable operational signals. This will help enterprises better manage observability costs as AI workloads continue to grow. Grafana also maintains an open architecture through OpenTelemetry, open APIs and MCP interfaces, allowing both engineers and AI agents to access telemetry securely.
“We believe being recognized as a Leader for the third year running – and furthest in Completeness of Vision for the second – reflects not just where we are today, but where the market is heading, and I am extremely proud of the organisation’s continued ability to innovate and adapt to meet our users’ needs,” said Anthony Woods, Co-Founder, Grafana Labs. “Observability is no longer just about metrics, logs, and traces. It is about intelligence, automation, and giving every team the ability to understand their systems at any scale. That includes the teams operating AI in production and the AI-native companies building the next generation of applications on top of it. Our job is to meet both with an open platform, actually useful AI workflows, and the visibility that their complex systems have been missing.”
Customer Adoption Continues Across Global Industries
Grafana Labs supports organizations across technology, finance, retail, manufacturing, media, and enterprise software sectors. Customers include Anthropic, ASOS, Citigroup, Lovable, NVIDIA, Salesforce, and Microsoft, which rely on Grafana Cloud to monitor complex production environments.
As of June 25, 2026, Grafana Labs reported an overall Gartner Peer Insights™ rating of 4.5 out of 5 based on 618 verified customer reviews. Additionally, 90 percent of reviewers said they would recommend Grafana Labs products.
The company also highlighted several customer statements reflecting positive experiences with Grafana Cloud.
“Our transition to Grafana Cloud has been a significant force multiplier for our DevOps team. By moving away from managing our own backend storage, we’ve reclaimed valuable engineering hours.” — IT Manager, Energy & Utilities Industry
“Grafana [Cloud] provides an amazing single pane of glass for our full observability stack.” — Solutions Engineer, IT Services Industry
“The AI agent and assistant are amazing. Adaptive Metrics let[s] us control metrics [on] the server side.” — IT Manager, Services Industry
“I really like how easy it is to use. I also think it’s a great product with rich features like the SRE AI Agent and on-call functions.” — Software Developer, $30B+ IT Services Company
“One of my best observability tools at this point. Grafana Cloud fits all my observability needs, from dashboards, to explore, to alerts.” — Engineer, Media Industry
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News Source: Businesswire.com
